Home Value = $100,000 Two Financing Alternatives
Question: 21. Home Value = $100,000 Two Financing Alternatives…
- Home Value = $100,000
Two Financing Alternatives
#1: 90% Loan to Value, 10.5% Interest Rate, 30 Years
#2: 80% Loan to Value, 10% Interest Rate, 25 Years
If you can invest $10,000 on investment that gives you IRR of 15% yearly, which of the two Financing Alternatives is better for you? Show your decision steps.